Goodland casts net abroad as local property market cools

Singapore - Boutique property developer Goodland Group is looking abroad to boost its earnings as the local market remains mired in gloom.

The company gave an update of its corporate and business strategy on Wednesday, highlighting the difficulties faced by many developers here.

"The local property market remains constrained by property cooling measures introduced by the Government, high land prices, increasing construction costs and shortage of workers," the firm said in a statement.

"The group will continue to exercise prudence when evaluating and exploring development opportunities in Singapore," the firm added.

As part of the strategy to mitigate the impact of the cooling measures here, Goodland intends to grow the regional business by selective land acquisitions.

Singapore now accounts for 100 per cent of the company's revenue, but it plans to grow turnover from regional developments to 25 per cent of its total revenue by the 2016 financial year.

It has already started the ball rolling, with October's $62.7 million acquisition of a 70 per cent stake in a major lifestyle project in Ipoh, the capital of Perak state in Malaysia.

The project, known as T-City, is expected to cater to international motorsports events.

Goodland will also look into new revenue streams like income from leasing and management activities from commercial projects.

These could include the rental of car showrooms, retail complex and food and beverage outlets, the company said.